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Perception + Perception = Reality?

8th Jun 2017

Category: Property headlines

Recent industry reports have shown the first signs of a slowdown in London high end property price growth and increasing discounting against advertised prices.

The housing market is ruled by the same laws that govern all markets (those being supply and demand) but another important factor is perception and it would appear perception has turned against vendors of expensive property in London.

Recent market data from London has shown discounting of up to 8% against asking prices (this is in the >£2m range, it’s around 3.2% for the market as a whole) as the head winds of Brexit and Tax changes subdue property investment and give buyers the jitters.

While most of us need not worry what is happening to high end London property in our highly connected age market data and just as importantly opinion and sentiment can spread like wildfire.  Perception is like an oil tanker, it can take a while to slow and even longer to turn but when it does getting back on track can be hard and the change we're seeing in London are a demonstration of how important market sentiment can be.

Comfort Opinion

We’re seeing strong demand for high quality investment property in Nottingham supported by investor confidence in the great returns available on Comfort Standard investment properties. London is a law unto itself and this feels like the some of the recent gains in London property unwinding.  Given the London market has been steaming ahead for a number of years a subtle sentiment shift towards caution as a result of tax changes, Brexit and the political whims of Westminster is completely understandable. 

Ben Harrington

Comfort Partner

An experienced Chartered Accountant and Founding Partner of Comfort Lettings.

Connect with me on Linkedin

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